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2 Business Investment Choice – Factors to Consider:
Finance: Business financial system and tax rates State and local incentives Legal and regulatory system Location: Infrastructure (utility and transportation) Market accessibility Labor: Availability of skilled and unskilled labor Training programs Other: Social and cultural barriers 2

3 Global Competitiveness :
The World Economic Forum Centre for Global Competitiveness and Performance has published its Global Competitiveness Report for 2010–2011 * ranking US # 4. Top 20 Ranked Countries/Economies: Country/Economy (North America Region) Rank United States 4 Canada 10 Mexico 66 Country/Economy (Europe) Rank Switzerland 1 Sweden 2 Germany 5 Finland 7 Netherland 8 Denmark 9 United Kingdom 12 Norway 14 France 15 Austria 18 Belgium 19 Luxemburg 20 *The report features detailed economic assessments of 139 economies around the world. It is based on 12 pillars of competitiveness: 1. Institutions 2. Infrastructure 3. Macroeconomic stability 4. Health and Primary educations 5. Higher education and training 6. Good market efficiency 7. Labor market efficiency 8. Financial market sophistication 9. Technological readiness 10. Market size 11. Business sophistication 12. Innovation Country/Economy (Asia) Rank Singapore 3 Japan 6 China 13 Hong Kong SAR 11 Country/Economy (Other Regions) Rank Australia 16 Qatar 17 3 Source:

4 General Comparison – North American Region:
Based on Global Competitiveness Report for 2010–2011 these are the characteristics of countries of the North American Region: Unites States highly sophisticated and innovative companies supported with the collaboration between excellent university systems and business in R&D the largest world economy ease and affordability of sophisticated labor with significant wage flexibility Canada well-functioning and transparent institutions efficient labor and financial market improvement in innovative potential of private sector with greater R&D spending needed Mexico Large market favorable for local companies good and innovative private sector (developed clusters) burdensome regulation, high payroll taxes and poor reliability of institutions increased security concerns 4

5 Global Economy – Where is Investment Moving?
The global economic situation compels businesses to reconsider their investment strategies and locate their operations in the United States. Growing in popularity: Manufacturing companies, including those that outsource overseas, choose to relocate their operations to the USA once they learn: there are U.S. locations with qualified and affordable labor; low taxes; attractive economic incentives. Many companies are finding that quality control challenges and productivity losses do not outweigh the cost advantages of being in an offshore location; and they ultimately want to be closer to the final market destination for their products and services.  5

6 Why Bring Manufacturing to USA:
Nations, such as China have labor intensive manufacturing processes versus the more automated and higher labor productivity processes found in the United States. For example, the productivity of manufacturing workers in China is approximately 12% of that found in the United States. The United States achieves and maintains a competitive edge through research & development, and innovations that yield more efficient and technologically advanced high quality production. Oil prices are affecting not only the price of labor in all world economies, but also the all important cost of transportation. The availability of a qualified, English speaking workforce is playing an important role in customer service for many US based companies, as well as the flexibility to respond to demand. Reasons for bringing manufacturing to USA: Product quality issues Problems finding qualified labor Rising foreign labor cost Social/cultural & other barriers Rising cost of transporting supplies/products Source: Area Development – Consultants Survey

7 Nevada - Your Business Opportunity:
Advantages that make Nevada popular for business opportunities: Corporate/Business Advantages Tax structure, consistent tax & business policies Low cost to incorporate and business friendly environment Incentive programs Geographic Location & Resources Proximity to large markets (megaregions) Excellent infrastructure (transportation & logistics) Natural resources Education, Workforce and Lifestyle Collaborative education system that works with the business sector Accessible and efficient workforce 7

8 Tax Structure Comparison – Major Tax Categories:
Nevada vs. Representative States in the Region: State Corporate Income Tax Personal Income Tax Sales Tax Nevada No California Arizona Utah Oregon Idaho Washington New Mexico Texas Florida North Carolina Tennessee Michigan 8 Western Region – neighboring states Mid-West Region Eastern Region

9 Nevada’s Corporate & Business Advantages:
Nevada’s Tax Structure is one of the least burdensome in the nation: NO Corporate Income Tax NO Personal Income Tax NO Inventory Tax NO Unitary Tax NO Franchise Tax NO Inheritance Tax NO Special Intangible Tax State of Nevada was ranked # 4 best state in the Tax Foundation’s 2011 State Business Tax Climate Index. 9

10 State Incentive Programs:
Sales & Use Tax Abatement – on eligible machinery and equipment; under abatement rate would be 2% Sales Tax Deferral – setting up interest free payment plan for taxes in the equal monthly payments over 60 months period (5Yrs) Modified Business Tax (Payroll Tax) Abatement –50% for 4 Yrs on new jobs Personal Property Tax Abatement – up to 50% abatement of personal property tax for up to 10 years on eligible equipment In addition to tax incentives, the State of Nevada offers training program incentives: Train Employees Now (TEN) - training administered and conducted in partnership with Nevada’s community colleges Silver State Works – administered by Nevada Department of Employment Training and Rehabilitation (DETR) Job Placement - Nevada Job Connect recruitment and employee search/job placement services are available at no cost to the employer 10

11 International Service – Foreign Trade Zones:
FTZ are restricted-access sites considered outside the U.S. Customs territory, but physically located in the U.S. Benefits of FTZ: Allows foreign and domestic merchandise to be admitted for operations such as storage, exhibition, assembly, manufacture and processing, without being subject to formal U.S. Customs entry procedures, duties or excise taxes. With no inventory, corporate income, or personal income taxes, Nevada’s FTZ offers an attractive incentives. Nevada’s Foreign Trade Zones: FTZ Northern Nevada, Reno/Sparks: - at nearly 1,300 acres is one of the largest in the nation and has been approved for Alternative Site Framework which allows most of the metro region to be designated an FTZ in approximately 30 days. FTZ Southern Nevada, Las Vegas: - is one of the most cost-effective and best situated for storing and distributing goods in the West. 11 Page 8

12 International Service – EB5 Visa Program:
The immigrant investor, or EB-5, program is a highly beneficial permanent residence option for foreign investors. Basic Criteria: The foreign investor may invest: in a commercial enterprise – owned by investor or by other parties, or in a government approved Regional Center that will create/preserve 10 full time jobs for US workers. The amount of investment is: $500,000 in targeted rural or high unemployment areas $1 million in other areas Important Note: Investor has to be able to document the lawful source of investment funds, whether his or her own or funds given to him or her as a gift. The permanent residence obtained by the investor is conditional for two years and can be made permanent upon satisfying USCIS at the end of the two years that the investment proceeds have not been withdrawn and the requisite jobs have been created. For detailed information and program criteria, contact a local Regional Center - Nevada EB5 Regional Center: Clark County, Nevada Regional Economic Development Center (NREDC), or Las Vegas Regional Center . 12

13 Geographic Location - Proximity to Major Markets
Centrally located to major western cities including San Francisco, Portland, Salt Lake City, Las Vegas, and Los Angeles. Megaregions: As a part of Northern California and Southern California Megaregion Nevada has easy access to California's markets without California's tax burden. combined 12% of US GDP is represented in these two regions. Because of it’s central location, Nevada also has access to megaregions of northwest – Cascadia, Arizona Sun Corridor and Front Range megaregion. Cascadia Northern California Mega Region Reno Salt Lake City Denver Las Vegas Southern California Mega Region Front Range 13 Arizona Sun Corridor (Megaregions - metropolitan area that expanded, create interlocking economic systems) Source:

14 Infrastructure – Transportation Network
Nevada is strategically located with an extensive transportation network Highway Structure: I-80 corridor – servicing east-west traffic US 395 corridor – servicing north-south traffic US 50 corridor - connects to the US 395 corridor US 95 corridor – connecting the I-80 corridor and the US50 corridor and the I-15 Electric Highway – an existing network of chargers along I-80 to get EVs from the Bay Area to Tahoe. NV Energy is working to extend this electric highway into Reno. Airports: McCarran Intl. Airport (Las Vegas) 6th busiest airport in the Northern America Reno-Tahoe Intl. Airport strategically located between major ports of San Francisco and Los Angeles, this airport is an official diversion airport for all CA Bay Area airports. Railroad: Transcontinental Railroad – has quick access to the ports in the San Francisco Bay area and provides efficient rail cargo distribution. 14

15 Infrastructure – Logistics & Distribution Network:
The logistics industry provides a complete transportation network, and international logistics services support to key business sectors. More than 50 carriers serve Nevada, offering transcontinental, fast-freight and van-line shipping to major markets that are within one or two day truck transit range: Reno area: Logistics and distribution are the largest segment of the Greater Reno-Tahoe economy and it’s ranked “4-Star Logistics Metro” by 2006 Logistics Quotient, Expansion Management and Logistics today. City Reno Las Vegas Highway Miles Denver, CO 1,044 745 Los Angeles, CA 475 271 Phoenix, AZ 753 289 Portland, OR 586 1,189 Sacramento, CA 135 562 Salt Lake City, UT 526 423 San Diego, CA 575 327 San Francisco, CA 231 570 Seattle, WA 721 1,261 Las Vegas area: Las Vegas is a “net-importer” more freight arrives than leaves, making the shipping cost to other cities very low. 15 One and two day trucking service from Nevada to major markets

16 Natural Resources & Renewable Energy Nevada Facts:
Abundance of clean energy resources: solar, geothermal and wind (first in solar Resources, largest producer of geothermal energy in nation, lithium source for battery operated hybrid vehicles) Nevada adopted one of the most aggressive Renewable Energy Portfolio Standard (RPS) (25% of utility’s energy from renewable resource by 2025) Strategically located to generate the renewable energy necessary to serve this regional market (potential for Nevada to export renewable energy to California and Arizona) In the process of developing a more robust transmission system (agreement between NV Energy and LS Power to link northern and southern transmission systems) Investing in R&D creating strong collaboration between System of Higher Education and business/private sector 16

17 Solar Resources & Potential:
With an average of 300 days of sunshine per year, Nevada ranks first in solar resources. This makes Nevada an excellent location for the development of solar power and home to several major solar plants. Nevada has more than 110 MW already generated with 776 MW currently permitted. Currently Nevada has 10 solar projects, and large concentration of solar equipment manufacturers, and service network to supply growing demand. 17

18 Wind Resources & Potential:
Nevada has a wind resources consistent with utility-scale production Wind zones potential capacity of 5,740 MWh ranks 21st in the nation. Nevada has over 24 million acres within 10 miles of transmission lines with wind potential of 63 million MWh. 18

19 Geothermal Resources & Potential:
Nevada is the largest producer of geothermal energy per capita in the nation (Geothermal Energy Association, April 2010) (38 geothermal projects) Nevada is ranked #1 in the nation for capacity under development (86 projects with capacity between 2,120 – 3,686 MW) 19

20 Lithium Mine Resources:
Nevada is the fourth largest producer of lithium in the world after Chile, Bolivia, and China. After Nevada is Australia and Argentina. We currently export lithium to both Japan and China. There is one currently operating lithium mine in North America: Chemetall Foote Corp., Silver Peak, Esmeralda County, brine extraction process currently looking for investments to expand their current operation but are not interested in selling There are two other deposits of lithium in Nevada but they are not yet producing: Western Lithium - a Canadian corporation but has a wholly owned subsidiary for their Nevada operations deposit is in a special type of clay their deposit is very large but it requires more work to get the lithium ore in a state to extract and purify it. Potential for investors to get the mine operational. American Lithium Minerals, Borate Hills project,: is in the same area of the existing Chemetall Foote Corp. mine brine extraction process. they are also looking for investment to get their deposit into production. 20

21 Education - Quality K-12 Education:
The Davidson Academy of Nevada: A free public school for profoundly gifted middle and high school students. The mission of The Davidson Academy is to provide an advanced educational opportunity matched to their abilities, strengths and interests. Located on the University of Nevada, Reno campus gives the opportunity for students to access university courses for advanced studies. To learn more visit: Advanced Technologies Academy: A Clark County School District Magnet School. Magnets have their roots in the concept of district-wide specialty schools. Academy is based upon the concept of Academics plus Technology where students are attending A-TECH study one of eight specialized program areas based upon the integration and use of technology. To learn more visit: 21

22 Higher Education – University of Nevada Reno (UNR):
The College of Engineering: Developed nationally recognized research and outreach programs One of the best graduate schools in the nation and also ranks in the top 5% of the 4,000 four-year colleges and universities (U.S. News and World Report). Research and Facilities: - maintains a number of laboratories and research centers, including Computer Networking Laboratory , Software Engineering Laboratory, Electric Drives Lab, Sustainable Energy Laboratory, Renewable Energy Center Department of Mechanical Engineering: Accredited by the Engineering Accreditation Commission of the Accreditation Board for Engineering Technology (ABET), Inc. The Great Basin Center for Geothermal Energy : Conducting research on geothermal energy as viable energy source Renewable Energy Center, UNR and College of Engineering, UNR are conducting research in collaboration with Sierra Nevada Co. and Desert Research Institute to develop a transportable, renewable-energy, power generating system to produce and supply energy. ( 22

23 Higher Education – University of Nevada, Las Vegas (UNLV):
The Howard R. Hughes College of Engineering: Provides research and academic programs to more than 1,600 undergraduate and graduate students. Research and Facilities: - maintains a number of laboratories and research centers, including maintains a number of laboratories and research centers, including Center for Energy Research, Center for Materials and Structures, Energy Materials Interaction Technology Initiative of Nevada. The Harry Reid Center for Environmental Studies: Provides support multi-disciplinary research teams, provide expertise to solve complex environmental problems, and develop innovative environmental monitoring technology. UNLV and a number of committed community members are developing a Solar Solution Center that will establish UNLV as a national center of excellence – a solar research hub of the Southwest. ( William F. Harrah College of Hotel Administration: Consistently one of the highest ranked hotel and hospitality colleges in the nation that provides students access to one of the largest and most demanding educational laboratories in the field. 23

24 Desert Research Institute (DRI):
Conducts cutting-edge applied research in air, land and life, and water quality across Nevada, the United States and on every continent.: For higher education students - DRI provides a learning environment strongly focused on collaborative, interdisciplinary research: - Atmospheric Sciences Graduate Program, Graduate Program of Hydrologic Sciences at UNR (rank top 10 by US News & World Report), GreenPower Program and more. DRI is also committed to Nevada's K-12 education system and the professional development of its teachers(“teaching the teachers”) The UNR-DRI Technology Transfer Office (TTO): - seeks to protect and commercialize the Intellectual Property (IP) produced via research activities at both the University of Nevada, Reno (UNR) and Desert Research Institute (DRI), a process referred to as technology transfer. Latest News: A new air-quality measuring instrument invented by Pat Arnott and Ian Arnold of the University of Nevada, Reno that is more economical, more portable and more accurate than older technologies has been licensed for commercial development by Droplet Measurement Technologies of Boulder, Colo. 24 24

25 Nevada Commission on Economic Development
(800) 808 West Nye Lane Carson City, NV 89703 Phone (775) 687–9900 Fax (775) 555 E. Washington Avenue, Suite 5400 Las Vegas, NV 89101 Phone (702) Fax (702) 25

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